What is sectoral composition of an economy? Is it necessary that the service sector should contribute maximum to GDP of an economy? Comment.


Sectoral Composition means the share or contribution to total GDP of an economy. That is agriculture, industrial sector and service sectors.Yes, it is necessary in later ages that service sectors contribute the maximum to the GDP. This implies that gradually the developing countries’ dependence on agriculture will shift from maximum to minimum and at the same time the industrial and service sector will increase in the total GDP. This structural transformation together with economic growth is known as economic development.

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